Credit Terms
What does "APR" stand for?
Annual Percentage Rate
What is a credit score?
A three-digit number that helps lenders determine how likely you are to pay back borrowed money.
What is an Annual Fee?
A yearly fee charged by some credit card companies for the using their card.
What is the lowest and highest possible credit score?
300-850
What is a grace period?
A grace period is the time period between the end of a billing cycle and the payment Due Date which no interest is charged on new purchases if the balance is paid in full.
True or False:
Checking your credit report or your credit score will lower your score.
False
What is a debt snowball?
It is a method for managing the "Cost of Debt."
Which factor has the biggest influence on your credit score?
Payment History
What is a hard inquiry?
It is a request by a lender to check your credit report after you apply for new credit.
Give 2 examples of how credit scores are calculated.
Possible Answers:
- Your payment history
- The amount of credit used versus your total available credit